An ongoing negotiation relating to the agreement on extending the distribution has led to the KTVN Channel 2 being barred for AT&T U-Verse® TV subscribers based in Northern Nevada. AT&T® failed to come to an agreement in the negotiations regarding the extension of distribution and the amount the Telco is agreeing to pay KTVN for its content. Moreover, AT&T® denied the permission to offer the channel without the approval from its owner Sarkes Tarzian Inc.
Lawson Fox, who is the General Manager of KTVN said, “Negotiation has to do with the value of our programming for the system. So they pay us for the privilege of the content. We’ve done 10 of these in the last few months successfully. This is the one that isn’t complete. And the only one where we didn’t maintain carriage during the conversation.”
He did not stress on the price they require from AT&T® on behalf of offering their content. The fact is that the pricing has increased right from the previous contract. The negotiations are further stalled by AT&T’s reluctance to pay higher prices for obtaining the same content.
Regional spokesperson of AT&T®, Steven Ramirez, said, “We want to get KTVN back into our Reno customers’ lineups as soon as possible, but by law, KTVN’s owner Sarkes Tarzian has exclusive control over whether that station remains available on U-verse or not. Sarkes Tarzian is seeking a significant increase in fees even though the same people can still watch its shows for free over-the-air on channel 2 and, often, at cbs.com or using the CBS app.”
However, KTVN is also stating that the price increase is also not that high. Fox also stresses that other TV and internet providers have already paid the new price and it is only AT&T® that is showing reluctance regarding paying the fees. AT&T® spokesperson Ramirez has also stated that Tarzian has disconnected the service based on contract disputes several times before.
Ramirez said, “Our goal is to offer customers more choice over the content they may care about most, delivered at a value they can consider justified. We want to resolve this matter quickly and reasonably, and appreciate our Reno customers’ patience while we attempt to do just that.” However, latest reports say that the negotiations are heading in a positive direction as AT&T® has finally accepted the offer made by KTVN to extend the distribution of the channel.